Frequently Asked Question
The real rate of return is the amount of interest earned over and above the:
a. discount rate.
b. tax rate.
c. inflation rate.
d. risk-free rate of return.
Answer: C
Since the real rate of return measures the investor's rate of return in excess of the inflation rate.
c. inflation rate.
d. risk-free rate of return.
Answer: C
Since the real rate of return measures the investor's rate of return in excess of the inflation rate.
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